Today’s Narrative - 📉Bearish📉

Macros

• Market awaits catalyst as the market is currently sitting in a spot where we’re either getting a liquidation candle, or waiting for a piece of news to react, indicating a potential volatility spike is looming.

• Sideways Bitcoin action continues as $BTC remains flat while the S&P 500 touches new all-time highs, a divergence not seen for a prolonged period, suggesting potential decoupling or crypto-specific pressures.

• Saylor's MicroStrategy announces offering as after initially stating no recent $BTC buys, Saylor announced Strategy is announcing a proposed private offering of $2 billion of convertible Senior Notes, signaling continued bullishness and capital raising for potential Bitcoin accumulation.

• Trump highlights wasteful spending as Trump announced wasteful spending in recent years, with Trump & DOGE appearing more aligned, including a recent interview, suggesting a potential meme coin narrative developing around the presidential candidate.

• FTX repayments continue as FTX repayments are ongoing, with the next payment announced for May, indicating a continued, albeit gradual, return of funds to creditors.

• $BTC dips and recovers as $BTC took a dip, touching $93.6K, but quickly recovered to return to $95.6K, showcasing market volatility and dip-buying interest around key levels.

• $BTC dominance rebounds as $BTC dominance is rebounding with relative altcoin weakness, suggesting a flight to safety or rotation back into Bitcoin amidst market uncertainty.

• $BTC red weeks streak nears bear market record as $BTC has not had 5 red weeks in a row since the bear market, highlighting the current prolonged period of downward or sideways price action.

• $BTC Open Interest rises despite price drop as Open Interest is up while $BTC is down, potentially indicating increased leverage and risk in the market, heightening liquidation risks.

• Coinbase Premium Gap turns negative as $BTC is selling off, and the Coinbase Premium Gap is negative, likely driven by $BTC ETF outflows, suggesting ETF-related selling pressure is contributing to current weakness.

• US stocks deemed most expensive in history as U.S. Stocks are now the most expensive in history based on valuation metrics, raising concerns about potential market correction risks.

• Investor bearishness on stocks increases as 47.3% of Investors are now bearish on the stock market, the most since November 2023, suggesting growing concern about traditional market outlook as well.

Cryptos

• Sonic leads Layer 1 strength as Sonic continues to be leading the move amongst the Layer 1s, managing to show proper strength, seemingly independent of broader market conditions.

• Sonic DEX volume and TVL surge as Sonic has recently surpassed $1B in cumulative volume and $465M in TVL, with stables breezing past $100 million, and TVL crossing $750M in just two months, demonstrating rapid growth and user adoption.

• $AO token faces friction as AO still has a lot of friction out there, making it quite difficult to use it and buy the token, potentially hindering wider adoption and price appreciation.

• $BERA showing strength as $BERA is starting to show some strength, potentially due to dead shorts getting wiped out, suggesting a possible short squeeze driven recovery.

• $LTC strength continues amid ETF speculation as $LTC continues to be crazily strong, sitting near the highs, and is a leader in mindshare for the next ETF, driving increased buying interest.

• Hyperliquid EVM goes live as Hyperliquid EVM went live yesterday, which came as a surprise, with expectations for increased activity and ecosystem growth moving forward.

• TAO ecosystem activity increases as activity is happening within the TAO ecosystem, with TAO subnets presenting opportunities in a still early stage market with low valuations and capped token supply for new subnets.

• Solana inflation reduction proposed as a potential catalyst for Solana could be related to Tushar’s proposal to reduce Solana inflation, although no date is set, it is a potentially positive development to monitor.

• $ETH momentum turns negative as $ETH price momentum has shifted from positive to negative, indicating weakening bullish sentiment and potential for further downside.

• SEC acknowledges Bitwise $XRP ETF filing as the SEC has acknowledged Bitwise's filing for a spot $XRP ETF, suggesting potential for further expansion of crypto ETF offerings, although approval is not guaranteed.

• Google explores Bitcoin adoption simplification as #Google exploring ways to simplify $Bitcoin adoption, indicating potential for increased mainstream integration and user accessibility of Bitcoin.

Key Takeaway

• Market at a Crossroads: The crypto market is at a critical juncture, awaiting a catalyst to break out of the current sideways action, with potential for both sharp liquidation-driven drops or news-driven rallies.

• Solana Ecosystem Divergence: While Solana faces ecosystem-specific headwinds and reduced on-chain activity, select projects like Sonic demonstrate resilience and rapid growth, creating a mixed picture for Solana investors.

• Altcoin Opportunities Emerge: Despite broader market uncertainty, specific altcoins like Litecoin ($LTC), $BERA, and projects within the TAO (Bittensor) ecosystem are showing strength or presenting unique opportunities, requiring selective and diligent investment approaches.

• Traditional Market Valuations Questionable: Traditional markets, particularly US stocks, are showing signs of overvaluation and increasing bearish investor sentiment, suggesting potential risks and a possible rotation towards undervalued or alternative assets.

Our Stance

In this environment of heightened uncertainty, prudent risk management is paramount. While market sentiment is undeniably negative, history shows that periods of peak bearishness can often precede significant market transitions. For long-term investors, this may be a time to carefully assess and selectively accumulate fundamentally sound assets, particularly within ecosystems like Solana that are currently facing temporary headwinds but still demonstrate underlying innovation and user engagement. However, extreme caution is warranted. The $OM whale activity and the ongoing fallout from the $LIBRA incident serve as stark reminders of the inherent risks in the crypto space. Investors should prioritize security, transparency, and due diligence above all else. Focus on platforms committed to consumer protection and projects with proven track records. Avoid chasing hype or succumbing to fear-driven selling. Instead, adopt a strategic, long-term perspective, and be prepared to navigate continued volatility in the weeks ahead.

Get More Crypto Insights Delivered Daily

Today’s Fastest Growing Company Might Surprise You

🚨 No, it's not the publicly traded tech giant you might expect… Meet $MODE, the disruptor turning phones into potential income generators.

Mode saw 32,481% revenue growth, ranking them the #1 software company on Deloitte’s 2023 fastest-growing companies list.

📲 They’re pioneering "Privatized Universal Basic Income" powered by technology — not government, and their EarnPhone, has already helped consumers earn over $325M!

Their pre-IPO offering is live at just $0.26/share – don’t miss it.

Invest Now

*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.